diff --git a/backend/app/api/admin.py b/backend/app/api/admin.py
index d4b8639..814fa3a 100644
--- a/backend/app/api/admin.py
+++ b/backend/app/api/admin.py
@@ -11,11 +11,12 @@ Provides admin-only access to:
 from datetime import datetime, timedelta
 from pathlib import Path
 from typing import Optional
-from fastapi import APIRouter, HTTPException, status, BackgroundTasks, Depends
+from fastapi import APIRouter, HTTPException, status, Depends
 from pydantic import BaseModel, EmailStr
 from sqlalchemy import select, func, desc
 
 from app.api.deps import Database, get_current_user
+from app.config import get_settings
 from app.models.user import User
 from app.models.subscription import Subscription, SubscriptionTier, SubscriptionStatus, TIER_CONFIG
 from app.models.domain import Domain
@@ -26,6 +27,7 @@ from app.models.auction import DomainAuction
 from app.models.price_alert import PriceAlert
 
 router = APIRouter()
+settings = get_settings()
 # ============== Admin Authentication ==============
 
 async def require_admin(
@@ -606,10 +608,18 @@ async def trigger_tld_scrape(
     admin: User = Depends(require_admin),
 ):
     """Manually trigger a TLD price scrape."""
+    # Prefer job queue in production (non-blocking)
+    if settings.enable_job_queue and settings.redis_url:
+        from app.jobs.client import enqueue_job
+
+        job_id = await enqueue_job("scrape_tld_prices")
+        return {"message": "TLD price scrape enqueued", "job_id": job_id}
+
+    # Fallback: run inline
     from app.services.tld_scraper.aggregator import tld_aggregator
-    
+
     result = await tld_aggregator.run_scrape(db)
-    
+
     return {
         "message": "TLD price scrape completed",
         "status": result.status,
@@ -1099,7 +1109,6 @@ async def test_external_apis(
 
 @router.post("/trigger-scrape")
 async def trigger_auction_scrape(
-    background_tasks: BackgroundTasks,
     db: Database,
     admin: User = Depends(require_admin),
 ):
@@ -1110,20 +1119,27 @@ async def trigger_auction_scrape(
     1. Try Tier 1 APIs (DropCatch, Sedo) first
     2. Fall back to web scraping for others
     """
+    # Prefer job queue in production (non-blocking)
+    if settings.enable_job_queue and settings.redis_url:
+        from app.jobs.client import enqueue_job
+
+        job_id = await enqueue_job("scrape_auctions")
+        return {
+            "message": "Auction scraping enqueued",
+            "job_id": job_id,
+            "note": "Check /admin/scrape-status for results",
+        }
+
+    # Fallback: run inline
     from app.services.auction_scraper import AuctionScraperService
-    
+
     scraper = AuctionScraperService()
-    
-    # Run scraping in background
-    async def run_scrape():
-        async with db.begin():
-            return await scraper.scrape_all_platforms(db)
-    
-    background_tasks.add_task(run_scrape)
-    
+    result = await scraper.scrape_all_platforms(db)
+
     return {
-        "message": "Auction scraping started in background",
-        "note": "Check /admin/scrape-status for results"
+        "message": "Auction scraping completed",
+        "result": result,
+        "note": "Check /admin/scrape-status for results",
     }
 
 
diff --git a/backend/app/config.py b/backend/app/config.py
index 174ce29..49fa96d 100644
--- a/backend/app/config.py
+++ b/backend/app/config.py
@@ -33,6 +33,23 @@ class Settings(BaseSettings):
     check_minute: int = 0
     scheduler_check_interval_hours: int = 24
     enable_scheduler: bool = False  # Run APScheduler jobs in this process (recommend: separate scheduler process)
+
+    # Job Queue / Redis (Phase 2)
+    redis_url: str = ""  # e.g. redis://redis:6379/0
+    enable_job_queue: bool = False
+
+    # Observability (Phase 2)
+    enable_metrics: bool = True
+    metrics_path: str = "/metrics"
+    enable_db_query_metrics: bool = False
+
+    # Rate limiting storage (SlowAPI / limits). Use Redis in production.
+    rate_limit_storage_uri: str = "memory://"
+
+    # Database pooling (PostgreSQL)
+    db_pool_size: int = 5
+    db_max_overflow: int = 10
+    db_pool_timeout: int = 30
     
     # =================================
     # External API Credentials
diff --git a/backend/app/database.py b/backend/app/database.py
index 612f417..e775c16 100644
--- a/backend/app/database.py
+++ b/backend/app/database.py
@@ -7,11 +7,22 @@ from app.config import get_settings
 settings = get_settings()
 
 # Create async engine
-engine = create_async_engine(
-    settings.database_url,
-    echo=settings.debug,
-    future=True,
-)
+engine_kwargs = {
+    "echo": settings.debug,
+    "future": True,
+}
+# Production hardening: enable connection pooling for Postgres
+if settings.database_url.startswith("postgresql"):
+    engine_kwargs.update(
+        {
+            "pool_size": settings.db_pool_size,
+            "max_overflow": settings.db_max_overflow,
+            "pool_timeout": settings.db_pool_timeout,
+            "pool_pre_ping": True,
+        }
+    )
+
+engine = create_async_engine(settings.database_url, **engine_kwargs)
 
 # Create async session factory
 AsyncSessionLocal = async_sessionmaker(
diff --git a/backend/app/jobs/__init__.py b/backend/app/jobs/__init__.py
new file mode 100644
index 0000000..913d4c2
--- /dev/null
+++ b/backend/app/jobs/__init__.py
@@ -0,0 +1,3 @@
+"""Async job queue (ARQ / Redis)."""
+
+
diff --git a/backend/app/jobs/client.py b/backend/app/jobs/client.py
new file mode 100644
index 0000000..7733a41
--- /dev/null
+++ b/backend/app/jobs/client.py
@@ -0,0 +1,38 @@
+"""ARQ client helper to enqueue jobs."""
+
+from __future__ import annotations
+
+from typing import Any
+
+from arq.connections import RedisSettings, create_pool
+
+from app.config import get_settings
+
+_pool = None
+
+
+async def _get_pool():
+    global _pool
+    if _pool is not None:
+        return _pool
+
+    settings = get_settings()
+    if not settings.redis_url:
+        raise RuntimeError("redis_url is not configured (set REDIS_URL)")
+
+    _pool = await create_pool(RedisSettings.from_dsn(settings.redis_url))
+    return _pool
+
+
+async def enqueue_job(name: str, *args: Any, **kwargs: Any) -> str:
+    """
+    Enqueue a job by name. Returns the job id.
+    """
+    pool = await _get_pool()
+    job = await pool.enqueue_job(name, *args, **kwargs)
+    # job may be None if enqueue failed
+    if job is None:
+        raise RuntimeError(f"Failed to enqueue job: {name}")
+    return job.job_id
+
+
diff --git a/backend/app/jobs/tasks.py b/backend/app/jobs/tasks.py
new file mode 100644
index 0000000..dfa17f0
--- /dev/null
+++ b/backend/app/jobs/tasks.py
@@ -0,0 +1,72 @@
+"""Job functions executed by the ARQ worker."""
+
+from __future__ import annotations
+
+from datetime import datetime
+
+from sqlalchemy import select
+
+from app.database import AsyncSessionLocal, init_db
+from app.models.auction import DomainAuction
+from app.services.auction_scraper import auction_scraper
+from app.services.pounce_score import calculate_pounce_score_v2
+from app.services.tld_scraper.aggregator import tld_aggregator
+
+
+async def scrape_auctions(ctx) -> dict:  # arq passes ctx
+    """Scrape auctions from all platforms and store results."""
+    await init_db()
+    async with AsyncSessionLocal() as db:
+        result = await auction_scraper.scrape_all_platforms(db)
+        await db.commit()
+        return {"status": "ok", "result": result, "timestamp": datetime.utcnow().isoformat()}
+
+
+async def scrape_tld_prices(ctx) -> dict:
+    """Scrape TLD prices from all sources and store results."""
+    await init_db()
+    async with AsyncSessionLocal() as db:
+        result = await tld_aggregator.run_scrape(db)
+        await db.commit()
+        return {
+            "status": "ok",
+            "tlds_scraped": result.tlds_scraped,
+            "prices_saved": result.prices_saved,
+            "sources_succeeded": result.sources_succeeded,
+            "sources_attempted": result.sources_attempted,
+            "timestamp": datetime.utcnow().isoformat(),
+        }
+
+
+async def backfill_auction_scores(ctx, *, limit: int = 5000) -> dict:
+    """
+    Backfill DomainAuction.pounce_score for legacy rows.
+
+    Safe to run multiple times; only fills NULL scores.
+    """
+    await init_db()
+    updated = 0
+    async with AsyncSessionLocal() as db:
+        rows = (
+            await db.execute(
+                select(DomainAuction)
+                .where(DomainAuction.pounce_score == None)  # noqa: E711
+                .limit(limit)
+            )
+        ).scalars().all()
+
+        for auction in rows:
+            auction.pounce_score = calculate_pounce_score_v2(
+                auction.domain,
+                auction.tld,
+                num_bids=auction.num_bids or 0,
+                age_years=auction.age_years or 0,
+                is_pounce=False,
+            )
+            updated += 1
+
+        await db.commit()
+
+    return {"status": "ok", "updated": updated, "timestamp": datetime.utcnow().isoformat()}
+
+
diff --git a/backend/app/jobs/worker.py b/backend/app/jobs/worker.py
new file mode 100644
index 0000000..7f18078
--- /dev/null
+++ b/backend/app/jobs/worker.py
@@ -0,0 +1,26 @@
+"""ARQ worker configuration."""
+
+from __future__ import annotations
+
+from arq.connections import RedisSettings
+
+from app.config import get_settings
+from app.jobs import tasks
+
+
+class WorkerSettings:
+    """
+    Run with:
+      arq app.jobs.worker.WorkerSettings
+    """
+
+    settings = get_settings()
+
+    redis_settings = RedisSettings.from_dsn(settings.redis_url or "redis://localhost:6379/0")
+    functions = [
+        tasks.scrape_auctions,
+        tasks.scrape_tld_prices,
+        tasks.backfill_auction_scores,
+    ]
+
+
diff --git a/backend/app/main.py b/backend/app/main.py
index 6d81725..5e2049d 100644
--- a/backend/app/main.py
+++ b/backend/app/main.py
@@ -18,6 +18,7 @@ from app.api import api_router
 from app.config import get_settings
 from app.database import init_db
 from app.scheduler import start_scheduler, stop_scheduler
+from app.observability.metrics import instrument_app
 
 # Configure logging
 logging.basicConfig(
@@ -32,7 +33,7 @@ settings = get_settings()
 limiter = Limiter(
     key_func=get_remote_address,
     default_limits=["200/minute"],  # Global default
-    storage_uri="memory://",  # In-memory storage (use Redis in production)
+    storage_uri=settings.rate_limit_storage_uri,  # Use Redis in production
 )
 
 
@@ -78,8 +79,8 @@ Domain availability monitoring and portfolio management service.
 
 ## Authentication
 
-Most endpoints require authentication via Bearer token.
-Get a token via POST /api/v1/auth/login
+Most endpoints require authentication via HttpOnly session cookie (recommended).
+Login: POST /api/v1/auth/login
 
 ## Rate Limits
 
@@ -98,6 +99,10 @@ For API issues, contact support@pounce.ch
     redoc_url="/redoc",
 )
 
+# Observability (Prometheus metrics)
+if settings.enable_metrics:
+    instrument_app(app, metrics_path=settings.metrics_path, enable_db_metrics=settings.enable_db_query_metrics)
+
 # Add rate limiter to app state
 app.state.limiter = limiter
 
diff --git a/backend/app/observability/__init__.py b/backend/app/observability/__init__.py
new file mode 100644
index 0000000..e461a04
--- /dev/null
+++ b/backend/app/observability/__init__.py
@@ -0,0 +1,3 @@
+"""Observability helpers (metrics, tracing)."""
+
+
diff --git a/backend/app/observability/metrics.py b/backend/app/observability/metrics.py
new file mode 100644
index 0000000..b756af3
--- /dev/null
+++ b/backend/app/observability/metrics.py
@@ -0,0 +1,122 @@
+"""Prometheus metrics for FastAPI + optional DB query metrics."""
+
+from __future__ import annotations
+
+import time
+from typing import Optional
+
+from fastapi import FastAPI, Request, Response
+
+try:
+    from prometheus_client import Counter, Histogram, generate_latest, CONTENT_TYPE_LATEST
+except Exception:  # pragma: no cover
+    Counter = None  # type: ignore
+    Histogram = None  # type: ignore
+    generate_latest = None  # type: ignore
+    CONTENT_TYPE_LATEST = "text/plain; version=0.0.4"  # type: ignore
+
+
+_instrumented = False
+_db_instrumented = False
+
+
+def _get_route_template(request: Request) -> str:
+    route = request.scope.get("route")
+    if route is not None and hasattr(route, "path"):
+        return str(route.path)
+    return request.url.path
+
+
+def instrument_app(app: FastAPI, *, metrics_path: str = "/metrics", enable_db_metrics: bool = False) -> None:
+    """
+    Add Prometheus request metrics and a `/metrics` endpoint.
+
+    - Low-cardinality path labels by using FastAPI route templates.
+    - Optional SQLAlchemy query timing metrics (off by default).
+    """
+    global _instrumented
+    if _instrumented:
+        return
+    _instrumented = True
+
+    if Counter is None or Histogram is None:
+        # Dependency not installed; keep app working without metrics.
+        return
+
+    http_requests_total = Counter(
+        "http_requests_total",
+        "Total HTTP requests",
+        ["method", "path", "status"],
+    )
+    http_request_duration_seconds = Histogram(
+        "http_request_duration_seconds",
+        "HTTP request duration (seconds)",
+        ["method", "path"],
+        buckets=(0.01, 0.025, 0.05, 0.1, 0.25, 0.5, 1, 2.5, 5, 10),
+    )
+
+    @app.middleware("http")
+    async def _metrics_middleware(request: Request, call_next):
+        start = time.perf_counter()
+        response: Optional[Response] = None
+        try:
+            response = await call_next(request)
+            return response
+        finally:
+            duration = time.perf_counter() - start
+            path = _get_route_template(request)
+            method = request.method
+            status = str(getattr(response, "status_code", 500))
+            http_requests_total.labels(method=method, path=path, status=status).inc()
+            http_request_duration_seconds.labels(method=method, path=path).observe(duration)
+
+    @app.get(metrics_path, include_in_schema=False)
+    async def _metrics_endpoint():
+        return Response(generate_latest(), media_type=CONTENT_TYPE_LATEST)
+
+    if enable_db_metrics:
+        _instrument_db_metrics()
+
+
+def _instrument_db_metrics() -> None:
+    """Attach SQLAlchemy event listeners to track query latencies."""
+    global _db_instrumented
+    if _db_instrumented:
+        return
+    _db_instrumented = True
+
+    if Counter is None or Histogram is None:
+        return
+
+    from sqlalchemy import event
+    from app.database import engine
+
+    db_queries_total = Counter(
+        "db_queries_total",
+        "Total DB queries executed",
+        ["dialect"],
+    )
+    db_query_duration_seconds = Histogram(
+        "db_query_duration_seconds",
+        "DB query duration (seconds)",
+        ["dialect"],
+        buckets=(0.001, 0.0025, 0.005, 0.01, 0.025, 0.05, 0.1, 0.25, 0.5, 1, 2.5),
+    )
+
+    dialect = engine.sync_engine.dialect.name
+
+    @event.listens_for(engine.sync_engine, "before_cursor_execute")
+    def _before_cursor_execute(conn, cursor, statement, parameters, context, executemany):  # type: ignore[no-untyped-def]
+        conn.info.setdefault("_query_start_time", []).append(time.perf_counter())
+
+    @event.listens_for(engine.sync_engine, "after_cursor_execute")
+    def _after_cursor_execute(conn, cursor, statement, parameters, context, executemany):  # type: ignore[no-untyped-def]
+        start_list = conn.info.get("_query_start_time") or []
+        if not start_list:
+            return
+        start = start_list.pop()
+        duration = time.perf_counter() - start
+        db_queries_total.labels(dialect=dialect).inc()
+        db_query_duration_seconds.labels(dialect=dialect).observe(duration)
+
+
diff --git a/backend/requirements.txt b/backend/requirements.txt
index 2734d29..abd8a8e 100644
--- a/backend/requirements.txt
+++ b/backend/requirements.txt
@@ -45,5 +45,12 @@ stripe>=7.0.0
 # Rate Limiting
 slowapi>=0.1.9
 
+# Observability (Prometheus)
+prometheus-client>=0.20.0
+
+# Job Queue (Redis)
+arq>=0.26.0
+redis>=5.0.0
+
 # Production Database (optional)
 # asyncpg>=0.30.0  # Already included above
diff --git a/docker-compose.yml b/docker-compose.yml
index 85c0b33..a57c78b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -18,6 +18,20 @@ services:
       timeout: 5s
       retries: 5
 
+  # Redis (job queue + rate limiting storage)
+  redis:
+    image: redis:7-alpine
+    container_name: pounce-redis
+    restart: unless-stopped
+    command: ["redis-server", "--appendonly", "yes"]
+    volumes:
+      - redis_data:/data
+    healthcheck:
+      test: ["CMD", "redis-cli", "ping"]
+      interval: 10s
+      timeout: 5s
+      retries: 5
+
   # FastAPI Backend
   backend:
     build:
@@ -32,9 +46,15 @@ services:
       SECRET_KEY: ${SECRET_KEY:-change-this-in-production}
       CORS_ORIGINS: ${CORS_ORIGINS:-http://localhost:3000}
       ENABLE_SCHEDULER: "false"
+      ENABLE_JOB_QUEUE: "true"
+      REDIS_URL: redis://redis:6379/0
+      RATE_LIMIT_STORAGE_URI: redis://redis:6379/0
+      ENABLE_METRICS: "true"
     depends_on:
       db:
         condition: service_healthy
+      redis:
+        condition: service_healthy
     healthcheck:
       test: ["CMD", "curl", "-f", "http://localhost:8000/health"]
       interval: 30s
@@ -57,6 +77,26 @@ services:
         condition: service_healthy
     command: ["python", "run_scheduler.py"]
 
+  # Worker (ARQ / Redis job queue)
+  worker:
+    build:
+      context: ./backend
+      dockerfile: Dockerfile
+    container_name: pounce-worker
+    restart: unless-stopped
+    environment:
+      DATABASE_URL: postgresql+asyncpg://pounce:${DB_PASSWORD:-changeme}@db:5432/pounce
+      SECRET_KEY: ${SECRET_KEY:-change-this-in-production}
+      ENABLE_SCHEDULER: "false"
+      ENABLE_JOB_QUEUE: "true"
+      REDIS_URL: redis://redis:6379/0
+    depends_on:
+      db:
+        condition: service_healthy
+      redis:
+        condition: service_healthy
+    command: ["arq", "app.jobs.worker.WorkerSettings"]
+
   # Next.js Frontend
   frontend:
     build:
@@ -73,4 +113,5 @@ services:
 
 volumes:
   postgres_data:
+  redis_data:
 
diff --git a/frontend/next.config.js b/frontend/next.config.js
index 2702ffe..3ebd517 100644
--- a/frontend/next.config.js
+++ b/frontend/next.config.js
@@ -1,7 +1,7 @@
 /** @type {import('next').NextConfig} */
 const nextConfig = {
   reactStrictMode: true,
-  // output: 'standalone', // Only needed for Docker deployment
+  output: 'standalone',
   
   // Performance & SEO optimizations
   poweredByHeader: false, // Remove X-Powered-By header for security
diff --git a/loadtest/README.md b/loadtest/README.md
new file mode 100644
index 0000000..bb0f9d7
--- /dev/null
+++ b/loadtest/README.md
@@ -0,0 +1,24 @@
+## Load testing
+
+This folder contains lightweight load test scaffolding to validate API performance regressions.
+
+### k6 (recommended)
+
+1. Install k6 (macOS):
+
+```bash
+brew install k6
+```
+
+2. Run the smoke test against a running stack:
+
+```bash
+BASE_URL=http://localhost:8000 k6 run loadtest/k6/api-smoke.js
+```
+
+### Notes
+
+- The scripts assume the FastAPI backend is reachable at `BASE_URL` and the API prefix is `/api/v1`.
+- For authenticated endpoints, extend the script to login first and replay the cookie.
+
+
diff --git a/loadtest/k6/api-smoke.js b/loadtest/k6/api-smoke.js
new file mode 100644
index 0000000..8aec740
--- /dev/null
+++ b/loadtest/k6/api-smoke.js
@@ -0,0 +1,37 @@
+import http from 'k6/http'
+import { check, sleep } from 'k6'
+
+export const options = {
+  vus: 5,
+  duration: '30s',
+  thresholds: {
+    http_req_failed: ['rate<0.01'],
+    http_req_duration: ['p(95)<800'], // p95 < 800ms for these lightweight endpoints
+  },
+}
+
+const BASE_URL = __ENV.BASE_URL || 'http://localhost:8000'
+
+export default function () {
+  // Health
+  const health = http.get(`${BASE_URL}/health`)
+  check(health, {
+    'health status 200': (r) => r.status === 200,
+  })
+
+  // Public: auctions feed (anonymous)
+  const feed = http.get(`${BASE_URL}/api/v1/auctions/feed?source=external&limit=20&offset=0&sort_by=score`)
+  check(feed, {
+    'feed status 200': (r) => r.status === 200,
+  })
+
+  // Public: trending TLDs
+  const trending = http.get(`${BASE_URL}/api/v1/tld-prices/trending`)
+  check(trending, {
+    'trending status 200': (r) => r.status === 200,
+  })
+
+  sleep(1)
+}
+
+